Holcim Philippines has partnered with Peak Energy to launch one of the country's largest behind-the-meter solar projects, a significant move towards sustainable industrial operations. The 25-megawatt peak initiative will power two of Holcim's major cement plants, underscoring a strategic shift to renewable energy. This collaboration aims to reduce carbon emissions substantially while ensuring long-term energy cost stability and operational resilience for the global building solutions leader.
Project Scope and Environmental Impact
The landmark project will be distributed across two key manufacturing sites in the Philippines. A 13 MWp solar system will be installed at the Bacnotan plant in La Union, while the Norzagaray facility in Bulacan will host a 12 MWp installation. This combined capacity represents a major commitment by Holcim to integrate clean energy directly into its core production processes without disrupting its output.
Once fully operational, the solar facilities are projected to generate approximately 40 gigawatt-hours of clean electricity annually. This output will lead to a significant reduction in Holcim's carbon footprint, cutting CO₂ emissions by an estimated 28,500 tons per year. This environmental impact is comparable to removing about 6,000 gasoline-powered cars from the road each year, marking a substantial contribution to national climate goals.
A Strategic Financial and Operational Model
The initiative is structured under a 20-year Power Purchase Agreement (PPA), which eliminates the need for any upfront capital investment from Holcim. Under this arrangement, Peak Energy assumes full responsibility for the design, construction, operation, and long-term maintenance of the solar systems. Holcim will simply purchase the clean electricity generated on-site throughout the agreement's term, creating a financially accessible path to sustainability.
This financial model provides Holcim with immediate and significant savings on its electricity bills, along with long-term price stability in a volatile energy market. It allows the seamless integration of renewable power into its industrial operations without causing any disruption to cement production. The PPA framework thus enhances both the economic and operational resilience of the company's manufacturing facilities, ensuring business continuity.
A Blueprint for Philippine Industry
According to Gavin Adda, CEO of Peak Energy, this project represents a breakthrough for both the renewable energy and sustainable construction sectors in the Philippines. He noted that clean power has become a strategic asset for industry leaders seeking cost savings and price stability. This partnership demonstrates a robust model that supports both decarbonization and long-term operational security for large industrial clients across the region.
For Holcim, the collaboration aligns perfectly with its global sustainability goals and its ambition to achieve Net Zero emissions. Saeed Ola Ande, SVP and Head of Supply Chain at Holcim Philippines, stated that the project strengthens the company's shift toward cleaner operations. It is a crucial step in promoting sustainable manufacturing practices while reducing the company's overall carbon footprint in the country.
This landmark agreement serves as a powerful blueprint for other energy-intensive industries in the Philippines and the wider region. It demonstrates a viable path for large manufacturers to adopt renewable energy at scale without compromising their core business. The project effectively addresses the dual challenges of rising energy costs and increasing pressure to meet environmental targets, setting a new industry standard.
The partnership between Holcim and Peak Energy marks a pivotal moment for corporate sustainability in the Philippines' industrial landscape. By leveraging a strategic PPA model, the project successfully merges environmental responsibility with sound commercial logic, delivering both carbon reductions and cost efficiencies. This initiative not only advances Holcim's Net Zero goals but also sets a new, scalable benchmark for the entire region's manufacturing sector.